The New Mexico State Land Office has reported a record-breaking $117 million in bonus payments from its latest public oil and gas lease auction, according to an announcement by Commissioner of Public Lands Stephanie Garcia Richard. This marks the third consecutive month of historic revenue for the agency, with total bonus payments over the last three months exceeding $429 million.
Commissioner Garcia Richard said, “We’re now nearly a half a billion dollars in earnings in our three-month haul. As New Mexico prepares to hold a special legislative session to protect our residents from the worst of the Trump administration’s cuts to health insurance and food benefits, the money earned today gives our legislature and governor funding they can put to excellent use to meet the needs of New Mexican families. Industry knows that New Mexico has some of the best oil and gas plays in the world. After three highly successful auctions with the new top rate in place, we are now well on our way to earning billions more for our public schools in the long run. The results so far have been better than we could have even imagined.”
The recent surge in revenue follows implementation of Senate Bill 23, which raised the top royalty rate for premium oil and gas leases to 25%. The law took effect June 20th. In July, after this change, a then-record $56 million was earned from 14 parcels offered at auction—nine of which used the new royalty rate. August saw another record set with $256 million collected from just 10 parcels; one parcel in Eddy County reached over $84 million, setting both state and national records for per-acre value.
Each month, companies bid at public auctions held by the State Land Office for rights to develop certain oil and gas areas. Winning bidders pay bonus payments upfront for leases; once production begins on these leases, operators also pay royalties back to New Mexicans as compensation for developing state resources.
Funds generated from these activities support education and other public services throughout New Mexico. According to information provided by the State Land Office, since Commissioner Garcia Richard began her tenure in 2019, more than $12 billion has been raised for public schools, hospitals, and universities across the state. Over 13 million acres of state trust land are leased out not only for mineral development but also ranching, farming, renewable energy projects, business development initiatives, and outdoor recreation opportunities.
The agency is tasked with using state trust lands both to generate financial support for essential institutions while also working toward long-term stewardship and protection of these lands.
